Discretionary Spending
Federal spending that Congress controls through annual appropriations — covering defense, education, transportation, and other agency budgets.
How It Works
Discretionary spending accounts for about one-third of total federal spending. It includes everything Congress appropriates each year: defense spending (about half of discretionary), domestic agencies, infrastructure, scientific research, and foreign aid. Defense discretionary spending exceeded $850 billion in FY2023, while non-defense discretionary was about $900 billion. Discretionary spending is distinct from mandatory spending (Social Security, Medicare, Medicaid), which runs on autopilot under existing law.
Related Terms
- Mandatory Spending — Federal spending required by existing law without annual Congressional approval — primarily Social Security, Medicare, Medicaid, and interest on the debt.
- Appropriation — A law passed by Congress that authorizes federal agencies to spend a specific amount of money for a specific purpose during a defined period.
- Defense Spending — The portion of the federal budget dedicated to national defense — including military personnel, weapons systems, operations, and maintenance — totaling over $850 billion annually.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.